US sanctions four India-based companies for Iran petroleum trade
The United States has imposed sanctions on four India-based companies for importing petroleum and petrochemical products from Iran, according to a press release by the US State Department. The action was announced on Monday (August 24, 2026) as part of a new campaign described as 'Operation Economic Outcast'.
US Treasury Secretary Scott Bessent said the sanctions aim to block all potential sources of revenue for Iran. He called it an unprecedented campaign to sever Iran's financial lifelines. The measure broadens the risk of secondary sanctions for entities — including countries, businesses, or organisations — that continue to do business with Tehran.
Among the companies facing action is a customs broker identified as Portease Partners LLP, along with its partners Indrismiya Ashrafmiya Sheikh and Harish Ramachandra Rangi. The State Department said the firm facilitated the import of multiple shipments of Iranian petrochemical products. Mr. Sheikh and Mr. Rangi are Indian nationals.
The other Indian companies facing sanctions are Sadashiva Overseas Limited; PP Softtech Private Limited, along with its director Prashant Garg; and Prakrutees Infra Impex Private Limited. Mr. Garg is also an Indian national.
According to the press release, Sadashiva Overseas imported Iranian-origin petroleum products worth around $69 million from multiple companies. PP Softtech and Prakrutees Infra each imported petroleum products worth approximately $25 million.
These companies were placed on the sanctions list for 'knowingly engaging in a significant transaction for the purchase, acquisition, sale, transport, or marketing of petroleum or petroleum products from Iran', the release stated.
State Department spokesperson Tommy Pigott said in a statement: 'Today, the United States took sweeping action against multiple entities, individuals, and vessels enabling the Iranian regime’s destabilising activities.' He added that such activities include attacks against US forces and allies in the region, illicit weapons procurement, cyber intrusions into American infrastructure, and the movement of energy products whose sale funds terrorism globally.
The sanctions are part of a broader US strategy to pressure Iran economically. Secondary sanctions are designed to deter third-country businesses and individuals from engaging with Iran by threatening to cut them off from the US financial system. Indian companies have previously faced similar risks when dealing with Iranian oil and petrochemicals.
India has historically maintained diplomatic and economic ties with Iran, including efforts to develop the Chabahar port, while also balancing its strategic partnership with the United States. Over the years, Indian refiners have reduced purchases of Iranian crude oil due to US sanctions, though some trade in non-sanctioned goods has continued.
The latest action against Indian firms could have implications for businesses operating in sectors that involve trade with Iran. Experts say it underscores the need for Indian companies to carefully assess compliance with US sanctions, as the penalties can affect their access to international banking and markets.
The US has urged all countries to cut economic ties with Tehran or face retaliation. The full list of sanctioned entities and individuals was not disclosed in the initial press release, but further details are expected from the US Treasury Department.
